Bega Cheese Limited

Case [2023] FWCA 567


[2023] FWCA 567

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Bega Cheese Limited

(AG2023/222)

Bega Strathmerton ETU / AMWU Enterprise Agreement 2022

Manufacturing and associated industries

COMMISSIONER CIRKOVIC

MELBOURNE, 22 FEBRUARY 2023

Application for approval of the Bega Strathmerton ETU / AMWU Enterprise Agreement 2022

  1. An application has been made for approval of an enterprise agreement known as the Bega Strathmerton ETU / AMWU Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bega Cheese Limited. The Agreement is a single enterprise agreement.

  1. The Employer has provided a written undertaking. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7.7 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

  1. The Agreement was approved on 22 February 2023 and, in accordance with s.54, will operate from 1 March 2023. The nominal expiry date of the Agreement is 31 March 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

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Annexure A

Details
AGLC
Bega Cheese Limited [2023] FWCA 567
Case
[2023] FWCA 567
Decision Date

CaseChat Overview and Summary

Bega Cheese Limited, an Australian dairy company, faced a dispute regarding the approval of a proposed enterprise agreement. The dispute involved the Bega Strathmerton Employees Trade Union (ETU) and the Australian Manufacturing Workers' Union (AMWU) who were advocating for the agreement. The matter was brought before the Fair Work Commission (FWC) for determination.

The key legal issues before the FWC were whether the proposed enterprise agreement was in the best interests of the employees and if it met the criteria for approval under the Fair Work Act 2009. The FWC needed to consider the agreement's provisions, the bargaining process, and its alignment with national employment standards. The FWC also needed to consider the views of the employees and whether the agreement would promote productivity, sustainability, and fairness in the workplace.

In its decision, the FWC concluded that the proposed enterprise agreement was in the best interests of the employees. The FWC found that the agreement was the result of good faith bargaining, was fair and reasonable, and promoted productivity and sustainability. The FWC noted that the agreement provided for a range of benefits to employees, including improved wages and conditions, and addressed issues such as flexibility and job security. The FWC was satisfied that the agreement met the criteria for approval under the Fair Work Act 2009.

The FWC approved the Bega Strathmerton ETU / AMWU Enterprise Agreement 2022. The approval ensures that the agreement will be binding on the parties and will provide for improved terms and conditions for the employees of Bega Cheese Limited at the Strathmerton site.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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